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Home buyers group rejects regulators’ take on RERA

Real estate
‘Fight for RERA’, has objected to the interpretation of Real Estate Regulatory Act by regulators of Madhya Pradesh and Punjab

MUMBAI: A pan-India homebuyers’ pressure group, `Fight for RERA’, has objected to the interpretation of Real Estate Regulatory Act by regulators of Madhya Pradesh and

One of the regulators had recently clarified, while interpreting the Act, that builders cannot be penalised for earlier delays in their Ongoing Projects as the Act does not allow that. Developers can only be penalised if they fail to complete their projects within the new timeline provided at the time of registration of ongoing projects, the regulator explained.

The other regulator had clarified that builders can advertise, market and sell ongoing projects even during the three-month window until July 31, provided they register their projects with the state’s authority .

According to Fight For RERA, the Act has not differentiated in penal provisions applicable to ongoing projects or new ones.

The ministry of housing & urban poverty alleviation, in its notification of October 31, 2016, of Real Estate Rules for Union Territories without legislators, had asked for original timeline for completion of projects promised to consumers at the time of booking, along with all subsequent extensions taken from authorities. It had also kept future timelines to complete suitable with the pending work in the ongoing projects and that clarifies all doubts on the Act’s intent , the home buyers’ group said..

“The provisions of the RERA are very clear that suffering home buyers are eligible for compensation for earlier delays and no promoter can sell, advertise or market their real estate project without registration which otherwise will be in total disregard and violation of the very intent and object of the parent Act which was overwhelmingly welcomed by all the stakeholders,” said ML Lahoty , Fight For RERA’s legal consultant and a Supreme Court advocate.

Section 3 of the Real Estate (Regulations and Development) Act ’16 is clear that all the real estate projects from the date of commencement of the Act mandatorily needs to first register their projects with the real estate regulator and only then sell, advertise and/or market their real estate projects, Fight For RERA highlighted.

Ongoing projects have not been exempted from the purview of this section anywhere in the Act. It is pertinent to clarify here that proviso to Section 3 only mentions timeline within which ongoing projects is required to obtain registration, and by no stretch of imagination, it can be construed as exemption from the purview of Section 3 for ongoing projects, the group argued.

RERA was notified on May 1, 2016, and came into effect nationwide from May 1, 2017. States were asked to prepare and notify their respective rules in tandem with the Act so it could be implemented effectively.

So far Maharashtra, Uttar Pradesh, Madhya Pradesh, Rajasthan, Gujarat, Andhra Pradesh, Bihar, Chandigarh and Odisha have finalized their rules. The government had notified the final rules for the five union territories without legislators, and these were are seen as undiluted and were expected to be a model for other states.

Source:Economictimes.indiatimes

The post Home buyers group rejects regulators’ take on RERA appeared first on Real Estate Blogs | Real Estate News in India | Property News.



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